Transnational IT Operations
University of Phoenix
CMGT/578 '' CIS Strategic Planning
Instructor: Dennis Finigan
September 29, 2008
Transnational IT operations
The global marketplace has opened many new avenues of growth for national organizations. Industry competition has brought companies together to seek transnational opportunities that have developed due to technological, social, and economic changes around the world. This new corporate culture may reflect the need to hire and locate information technology facilities in whatever country meets the demands of corporate activities. International networks in terms of information technology (IT) have allowed organizations to expand their reach to host environments in order to facilitate and standardize the control and performance required to remain profitable.
Advantages of Transnational IT Operations
Technological, economical, political, and socio-cultural developments in the global marketplace have made locating or relocating facilities to other countries profitable and beneficial. Strategies like decentralizing corporate activities have made borders irrelevant and could become even invisible as globalization becomes more prominent. While the United States Free Trade Agreement (USFTA) and North American Free Trade Agreement (NAFTA) may have created an atmosphere in which business can conduct global production, development, and marketing, transnational corporations (TNC) may also find those cross-national agreements with information technology hiring and facility locations in other countries. IT operation facilities that may be hosted by a TNC could include production, development, project management, and telecommunications such as a call center. Hosting these facilities in other countries may reveal many advantages as shown in Table 1 below.